ALCOVE INDUSTRIES LTD. Vs. ORIENTAL STRUCTURAL ENGINEERS LTD.

JUDGEMENT

(1.) BY this order, I propose to disposed of OMP No. 7/2006 and OMP No. 26/2006 both preferred by the Petitioner under Section 12 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the 'Act') seeking removal of respondent no. 2, (the Sole Arbitrator) and appointment of an independent and impartial arbitrator in his place. Since, most of the facts and contentions are common to both the petitions, I am disposing them off by a common judgment, while making a note of the differences in facts and submissions in the two petitions. Background facts

(2.) THE respondent no.1 i.e. M/s Oriental Structural Engineers Ltd had been awarded the work for conversion of existing road to four lane by widening and strengthening of the existing road starting from 140 km to 180 km and 180 km to 240 km in the State of Bihar, Aurangabad sector by the National Highway Authority of India (NHAI). This contract is referred to as the Principal Contract. In turn, respondent no.1 awarded a part of the work to the petitioner for the quarrying of rock boulders including transportation and feeding into crusher vide work order dated 19.12.2000. (OMP No. 7/2006 has been preferred in relation to the Arbitration proceedings arising out of this work order). Vide separate work order dated 03.07.2002, various earth works to be done at the said road stretch were also awarded to the petitioner. (OMP No. 29/2006 pertains to the Arbitration proceedings arising out of this work order). Though the works commenced, soon thereafter certain safety issues were raised by the petitioner which ultimately led to the works coming to a halt. Various correspondences were exchanged between the parties and each found the other in the wrong for the works not being performed under the contract. Consequently, disputes and differences arose between the parties. The work order/agreement dated 19.12.2000 contained an arbitration agreement in clause 23 in the following terms:

(3.) THE petitioner invoked the arbitration agreement contained in clause 23 vide its letter dated 23.6.2003 and called upon the respondent no. 1 to suggest names of three retired High Court Judges from amongst whom one could be appointed as the sole arbitrator.